Introduction Topic I Topic II Topic III Topic IV

MODULE 2:
CASH TRANSFER
 Introduction Topic I Topic II Topic III Topic IV

Reporters:
Topic I. Topic II & III. Topic IV.

Argañosa, Ylonah Rose Buta, Jennyceil Cabugos, Luis Jr.

 Introduction Topic I Topic II Topic III Tarea

Table of Contents:
01 CASH TRANSFER METHODS

02 FEES FOR CASH TRANSFERS

03 THE PHILIPPINE PAYMENTS AND SETTLEMENTS -

NATIONAL RETAIL PAYMENT SYSTEM

04 CASH TRANSFER CONTROLS

Introduction Topic I Topic II Topic III Topic IV

01 Cash Transfer Methods

 Introduction Topic I Topic II Topic III Topic IV

Cash Transfer Methods

• is a direct transmission, settlement or payment of
money to a qualified person. 

Types of Cash Transfer Methods

1. Unconditional Cash Transfers
2. Conditional Cash Transfers
 Introduction Topic I Topic II Topic III Topic IV

A. Check Payments
• is made on a paper document, which has
traditionally been physically routed from the
payer to the payee, to the payee’s bank, and then
back to the payer’s bank.
 Introduction Topic I Topic II Topic III Topic IV

A. Check Payments
 Introduction Topic I Topic II Topic III Topic IV

Mechanics of a Check
Payment/Check Process Flow
Mail Processing Presentation Availability
Float Float Float Float

Check Payments through a Lockbox

 Remote Deposit Capture
 Remote Disbursement
 Introduction Topic I Topic II Topic III Topic IV

B. Wire Transfer
• It is a way of sending funds to the recipient’s
bank account more easily than any other form of
payment, and is mostly used in international
payment.
Introduction Topic I Topic II Topic III Topic IV

Information needed for

Wire Transfer:
• Sending company’s name, address, and account
number
• Recipient’s name and account number
• Recipient bank’s name and bank identification
number
• Amount of the payment
 Introduction Topic I Topic II Topic III Topic IV

C. ACH Payments
• is an electronic network for the processing of both
credit and debit transactions especially in the
United States and Canada. ACH payments include:

 direct deposit payroll,

 Social Security payments,
 tax refunds,
 bills
 Introduction Topic I Topic II Topic III Topic IV

What is a Letter of Credit?

• A letter of credit, or "credit letter," is a letter from
a bank that guarantees a buyer's payment to a
seller will be settled on time and for an accurate
amount. If the buyer fails to make a payment on
the purchase, the bank will be required to cover
the full or remaining amount of the purchase.
Introduction Topic I Topic II Topic III Topic IV
 Introduction Topic I Topic II Topic III Topic IV

Letter of Credit Process

 Introduction Topic I Topic II Topic III Topic IV

D. Procurement Cards
• A company can make smaller-scale payments with a
procurement card program. This can involve the
use of debit cards, which deduct cash directly from
a company’s bank account, but more commonly
employ credit cards.
 Introduction Topic I Topic II Topic III Topic IV

E. Cash Payments
• Inbound cash payments tend to be for very small
transactions, though possibly in very high volume,
especially in retail situations. However, business-
to-business cash payments are not common.
Introduction Topic I Topic II Topic III Topic IV

02 Fees for Cash Transfers

 Introduction Topic I Topic II Topic III Topic IV

Fees for Cash Transfers

Introduction Topic I Topic II Topic III Topic IV
Introduction Topic I Topic II Topic III Topic IV

03
The Philippine Payments and Settlements -
National Retail Payment System
Introduction Topic I Topic II Topic III Topic IV

 Payment System Management Body

 Introduction Topic I Topic II Topic III Topic IV

System Management Body (PSMB)

• is comprised of representatives from different
stakeholders. It manages risk and self-regulates
members.

January 12, 2018

• a memorandum of agreement was entered into by
the BSP and the Philippine Payments Management,
Inc.
 Introduction Topic I Topic II Topic III Topic IV

Automated Clearing Houses (ACHs) and

Clearing Switch Operators (CSOs)
 Introduction Topic I Topic II Topic III Topic IV

Automated Clearing House (ACH)

• a multilateral legally binding agreement.

Payment streams in a multilateral

ACH:
• promotes greater efficiency better risk manage​ment
• interoperability compared to separate bilateral
agreements
 Introduction Topic I Topic II Topic III Topic IV

• The Bangko Sentral ng Pilipinas enumerated some of the most

popular ACH as follows:

Automated Clearing Houses (ACHs) under the NRPS

1. PESONet (Philippine EFT System and
Operations Network)
• launched on 08 November 2017
• a batch electronic fund transfer (EFT) credit payment
scheme
• under the rules of said ACH, the fund transfer and/or
payment instructions will be processed in bulk and
cleared at batch intervals
 Introduction Topic I Topic II Topic III Topic IV

Features of PESONet
• makes business-to-business (B2B), and person-to-
business (P2B) payments.

• enable business-to-person (B2P)

• enable the digitization of government-to-government

(G2G) and person-to-government (P2G) collections and
payments.

• opportunity for smaller industry players such as thrift

and rural banks.
 Introduction Topic I Topic II Topic III Topic IV

2. InstaPay
• launched on 23 April 2018

• is a real-time low-value EFT credit push payment scheme

• designed to facilitate small value payments

 Introduction Topic I Topic II Topic III Topic IV

Features of InstaPay
• enable merchants to accept electronic payments without
the usual point-of-sale (POS) device used for cards.

• MSMEs (Ministry of Micro, small & Medium Enterprises)

will be able to build a rich digital transaction history.

• convenient and affordable.

• electronic payments
 Introduction Topic I Topic II Topic III Topic IV

Features of InstaPay
• enable merchants to accept electronic payments without
the usual point-of-sale (POS) device used for cards.
• MSMEs (Ministry of Micro, small & Medium Enterprises)
will be able to build a rich digital transaction history.
• convenient and affordable.
• electronic payments

3. BancNet
• is the designated clearing switch operator.
Introduction Topic I Topic II Topic III Topic IV

04
Cash Transfer
Controls
 Introduction Topic I Topic II Topic III Topic IV

A. Controls for Check Payments

The following controls should be used to create and monitor check
payments:
 Introduction Topic I Topic II Topic III Topic IV

B. Controls for Remote Deposit Capture

Controls are needed in converting the checks to an electronic format.
 Introduction Topic I Topic II Topic III Topic IV

C. Controls for Electronic Payments

The controls for electronic payments:
 Introduction Topic I Topic II Topic III Topic IV

The following controls address these additional issues in

electronic payments such as unauthorized account debits and
potentially incorrect or fraudulent payments.
 Introduction Topic I Topic II Topic III Topic IV

D. Controls for Letters of Credit

The following controls should be implemented prior to finalizing a
letter of credit:
 Introduction Topic I Topic II Topic III Topic IV

The following control involves the creation of the seller’s invoice to

the buyer, to ensure that it will be acceptable to the bank:
 Introduction Topic I Topic II Topic III Topic IV

E. Cash Forecasting Controls

Introduction Topic I Topic II Topic III Topic IV

THANK YOU FOR

LISTENING! 